Medicaid Bombshell: 100+ Centers Raided

New York could shut down an entire $500 million Medicaid program after federal and state agents raided more than 100 adult day care centers suspected of fraud.

Story Snapshot

A joint investigation targeted more than 100 social adult day care providers across New York City.
A state audit found $2.4 billion in payments for the program from 2019 to 2024, with $285 million flagged as questionable.
Governor Kathy Hochul said she is weighing whether to end the program entirely.
Federal prosecutors have already won guilty pleas and sentences in separate cases worth tens of millions of dollars.
The program serves roughly 45,000 Medicaid recipients through more than 400 locations statewide.

Agents Search Dozens of Centers Across the City

Federal, state, and local investigators searched adult day care centers in Brooklyn, Queens, and Staten Island, carrying out boxes and computer equipment. Governor Hochul said the operation was part of a months-long investigation into more than 100 providers statewide. She said investigators believe some operators engaged in “money laundering to kickbacks to improper billing, and other fraudulent activities.”

The Centers for Medicare and Medicaid Services joined the effort, with Administrator Dr. Mehmet Oz personally visiting one Queens facility during the sweep. Social adult day care is a Medicaid benefit that pays for meals, supervision, and social activities so older adults can stay out of nursing homes and remain in their own communities.

Audit Found Billions in Payments, Hundreds of Millions in Question

A February audit by State Comptroller Thomas DiNapoli found that Medicaid managed-care plans paid about $2.4 billion for adult day care services between January 2019 and October 2024. The audit flagged $285 million of that as questionable, including more than $28.6 million paid to centers that had already been terminated for cause.

The Federal Bureau of Investigation reportedly found that New York’s costs for this program ran 40% to 60% higher than the national average, a gap that raised red flags for investigators. The audit also criticized the state Department of Health for weak oversight, saying payments kept flowing to providers even after managed-care plans cut them off.

Past Cases Show How the Fraud Allegedly Worked

This is not the first time adult day care fraud has reached the courts. Ahsan Ijaz pleaded guilty to defrauding New York Medicaid of about $65 million by billing for services never provided, including claims for recipients who were not even in the United States at the time. Court records described cash kickbacks tied to the scheme.

In another case, federal prosecutors charged eight people in an alleged $38 million scheme. They accused operators of billing for hundreds of beneficiaries a day at centers licensed to hold only 30 people, along with medically unneeded or entirely fake services. Separately, two Staten Island operators now face charges, though their attorneys say the women deny any wrongdoing and have hired forensic accountants to review the claims.

Hochul Weighs Shutting Down the Program

Hochul’s office said the state has worked to tighten oversight of adult day care centers since Medicaid first began paying for the service. Now the governor is considering ending the $500 million program altogether rather than trying to fix it piece by piece. She said she is limited in what she can disclose while the investigation continues.

🚨 FEDERAL AGENTS JUST RAIDED NEW YORK CITY ADULT DAY CARE CENTERS OVER MEDICAID FRAUD.

Investigators hit Brooklyn, Queens and Staten Island, hauling out boxes and computers. More than 100 providers are now being looked at, and at least two arrests were reported on Staten… pic.twitter.com/UdMKeKbb47

— Thomas Jones (@Thomas_JonesX) October 21, 2026

Ending the program would affect the roughly 45,000 Medicaid recipients who use it across more than 400 locations statewide. Supporters of the service say it keeps seniors connected to their communities and out of costlier nursing homes, which could make full elimination a tough political call even as fraud evidence piles up.

What Happens Next

No final count has been released for how many of the targeted providers will face charges or lose their Medicaid contracts. The investigation remains active, and officials have not said when a decision on the program’s future will come. For now, the raids and the audit together paint a picture of a government benefit that grew large, grew costly, and grew harder to police.